Chinese gross domestic product rose 6.9% in the three months through September from a year earlier, the National Bureau of Statistics said Monday, slightly better than expected 6.8% growth. Still, that was the slowest quarterly expansion since the first three months of 2009, reinforcing views that Chinese government efforts to stimulate the economy were working.
Though, a string of monthly indicators released alongside the GDP data hinted at lingering weakness in the economy. Industrial production raised 5.7% on-year in September, missing expectations for a rise of 6.0% and coming in below August's 6.1% gain. Fixed-asset investment (FAI) - seen as a crucial driver of China's economy - came in at 10.3% in the first nine months of 2015, also below estimates for 10.8% growth. Retail sales were the exception, with annual growth of 10.9% in September, slightly above prediction of 10.8%.
Among Asian bourses
Australia market ends flat
The Australian share market ended virtually flat after drifting in and out of positive territory, as gains in the banks and financial stocks were offset by losses in materials. The benchmark S&P/ASX 200 index grew 1.50 points, or 0.03%, to 5269.70 points, while the broader All Ordinaries index added 0.90 point, or 0.02%, to 5304.60 points.
The banks and financial stocks were higher, ahead of the release of central bank policy meeting minutes on Tuesday. The RBA has kept its official cash rate steady since May. Australia's swap curve is pricing around 47 basis points of rate cuts for the year ahead and a 70% chance that the country's central bank cuts by December. Among top lenders, National Australia Bank added 0.6% to A$31.96 and ANZ Banking Group 0.7% to A$28.86. Westpac Bank advanced 3% to A$31.34 after emerging from a trading halt following the completion of the institutional leg of an equity raising that pulled in A$1.6 billion and saw about 95% of institutional shareholders take up the entitlement offer. Commonwealth Bank of Australia declined 0.2% to A$76.43.
Shares of developers were mostly weak after the RBA warned on Friday about continuing risks associated with soaring house prices and a growing supply-demand imbalance in the markets that might see the sector weaken over the medium term. Among developers, Stockland grew 0.5% to A$3.91, while Lend Lease Group sank 1.9% to A$12.85 and GPT Group 1.3% to A$4.62.
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Shares of materials and resources companies were down, with BHP Billiton lower by 1.2% to A$24.71 and Rio Tinto erased 0.6% to A$53.35. Fortescue Metal declined 4.2% to A$2.30. Arrium advanced 14.3% to A$0.12 after turning in quarterly iron-ore production figures
Shares in Treasury Wine Estate rallied 14.6% to A$7.40 after it emerged from a trading halt. The company has raised A$368 million from institutional investors to help pay for the acquisition of most of Diageo PLC's North American and British wine operations.
Nikkei falls on profit taking
The Japanese share market ended weaker, as investors moved to lock in recent gains after yen strength against greenback and concerns about slower Chinese economic growth after data showed China recorded its slowest pace of growth since 2009 in the third quarter. Total 26 out of 33 TSE first-section sector sub-indexes ended down, with Rubber Products, Nonferrous Metals, Iron & Steel, Wholesale Trade, Mining, Electric Appliances, Rubber Products and Banks issues being major gainers. The Nikkei Stock Average declined 160.57 points, or 0.88%, to end at 18131.23 points, meanwhile the broader Topix index shrank 0.74%, or 11.09 points, to 1494.75 at the close.
Shares of major exporters were down due to yen's renewed strength. The greenback slipped to 119.30 yen from 119.49 yen on Friday in New York. A stronger yen is negative for Japanese exporters as it makes products less competitive overseas and shrinks their profits when repatriated. Blue-chip exporters such as Toyota Motor Corp fell 0.6% to 7356 yen, Nissan Motor Co dropped 1.2% to 1196 yen and Subaru-maker Fuji Heavy Industries lost 1.1% to 4493 yen. Mazda Motor Corp tumbled 2.8% to 2256 yen after the company said last week it was recalling nearly one million vehicles to fix potentially defective ignition switches.
Industrial robot maker Fanuc Corp, a market heavyweight with strong ties to China, lost 2.9% to 19,160 yen and trading firm Itochu Corp. fell 2.7% to 1454 yen, after China recorded its slowest pace of growth since 2009 in the third quarter. Data showed during the day that China's economic growth slowed to 6.9% in the July-September quarter, slipping below 7% for the first time since 2009.
Tokyo Electric Power jumped 3.4% to 871 yen after reports that the embattled operator of the tsunami-hit Fukushima plant would start selling bonds next year as its financial situation improves.
Asahi Kasei Corp. fell 8.5% to 730 yen on continued selling, following disclosure that its subsidiary performed faulty installation of condo foundation piles.
China market eases from 8-week high
The Mainland China stocks ended mixed in volatile trade, as data showed China's economy grew at the slowest quarterly pace since 2009, but no signs of a hard landing which has been feared by some investors. Investors also drew some comfort from comments by Chinese President Xi Jinping, who told that China's economic slowdown was a "normal" part of structural adjustments. The Shanghai Composite Index declined 0.14%, or 4.65 points, to close at 3386.70 points. The Shenzhen Composite Index, which tracks stocks on China's second exchange, grew 0.14%, or 2.68 points, to 1969.64. The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, de-grew 0.63%, or 15.43 points, to close at 2433.60.
Shares of telecom, technology and industrial companies were the worst performances among 10 industry groups. China United Network Communications dropped 2.5%. Shanghai Wangsu Science & Technology Co. retreated 3.1%.
Hong Kong stocks end up
Hong Kong stock market ended marginally higher after recouping intraday losses late afternoon, as traders speculated the Chinese government will accelerate reforms of state-owned companies and loosen monetary policy to bolster the economic growth after data showed world second largest economy recorded its slowest pace of growth since 2009 in the third quarter. The Hang Seng Index advanced 8.24 points, or 0.04%, to 23075.61 points. The Hang Seng China Enterprises Index, benchmark measure of performance of mainland China enterprises, gained 51.53 points, or 0.48%, to 10688.54 points. Turnover reduced to HK$67.25 billion from HK$88 billion on Friday.
Sands China (01928) slid 6% to HK$28.6 after Daiwa Research downgraded its rating to "hold" noting the company is at risk of being unable to maintain its dividend payment. It was the worse blue-chip performer, followed by Galaxy Ent (00027), which slipped 5% to HK$26.7. Wynn Macau (01128) sank 4% to HK$11 as HSBC Research lowered its target price and numbers.
Telecom operators were up ahead of earnings. China Mobile (00941) gained 2% to HK$95.95 ahead of its earnings report tomorrow. China Unicom (00762) and China Telecom (00728) also added 0.2% and 1% to HK$10.58 and HK$4.08. Both carriers will also release their earnings on 22 and 28 of October.
CLP (00002) edged up 0.2% to HK$68.4 after announcing that the launch of China's property tax is likely to be delayed. COLI (00688) softened 1% to HK$25.7 despite its September sales jumped 10%. CR Land (01109) also dipped 1% to HK$21.35. China Vanke (02202) retreated 3% to HK$17.78.
Zhuzhou CSR Times Electric (03898) plunged 6% to HK$51.95 on a slew of earnings and target price downgrades after it reported 3Q earnings.
Hong Kong's seasonally adjusted unemployment rate stood at 3.3% in July - September 2015, same as that in June - August 2015. The underemployment rate also remained unchanged at 1.4% in the two periods, according to the Census and Statistics Department.
Indian indices clock modest gains
Post result rally for index heavyweight Reliance Industries (RIL) and gains for another index heavyweight Infosys and pharma stocks helped key benchmark indices register modest gains. The barometer index, the S&P BSE Sensex, rose 141.54 points or 0.52% to 27,356.14, as per the provisional closing data. The 50-unit CNX Nifty rose 36.90 points or 0.45% at 8,275.05, as per the provisional closing data. The trigger for the latest upmove for Indian stocks was an announcement from the finance ministry that it is seeking the views of foreign portfolio investors (FPIs) on measures to simplify the procedures and documentation for registration of FPIs in India.
The Department of Economic Affairs, Ministry of Finance announced that it has organized a meeting with the representatives of the foreign portfolio investors (FPIs) tomorrow, 20 October 2015, to seek their views on measures to simplify the procedures and documentation for registration of FPIs in India and deepening of corporate bond market. Separately, the Department of Economic Affairs will hold a meeting with domestic financial market participants on 21 October 2015 to seek their views on integration of various segments of the market, increasing retail participation and deepening of corporate bond market.
Elsewhere in the Asia Pacific region: Taiwan's Taiex index was up 0.3% to 8631.50. South Korea's KOPSI ended steady at 2030.27. New Zealand's NZX50 climbed up 0.3% to 5834.83. Singapore's Straits Times index fell 0.2% at 3024.50. Indonesia's Jakarta Composite index was up 1.1% to 4569.84. Malaysia's KLCI rose 0.1% to 1718.20.
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